By George K. Fuiaxis, Esq. | November 9, 2026
Buying or selling a home is one of the most significant financial transactions most people will undertake. Whether you are selling a single-family home in Nassau County, purchasing a two-family property in Queens, or buying a house in Suffolk County, understanding New York’s property disclosure requirements is an important part of protecting your interests.
New York law requires sellers of most one- to four-family residential properties to provide buyers with a Property Condition Disclosure Statement before the buyer signs a binding contract of sale.
For years, many sellers avoided completing this statement by providing a $500 credit to the purchaser at closing. That option is no longer available.
Changes to New York’s Property Condition Disclosure Act, effective March 20, 2024, significantly altered the obligations of residential property sellers. The law also expanded disclosure requirements concerning flooding and flood insurance.
Understanding these requirements before entering into a contract can help buyers and sellers avoid unnecessary disputes, delays, and potential legal exposure.
What Is a Property Condition Disclosure Statement?
A Property Condition Disclosure Statement is a document completed by the seller that provides information about certain known conditions affecting the property.
Under New York Real Property Law § 462, sellers of covered residential properties must complete and sign the prescribed disclosure statement and deliver it to the buyer or the buyer’s agent before the buyer signs a binding contract.
The statement addresses matters such as property ownership, environmental conditions, structural systems, water intrusion, and other conditions that may affect the property.
Importantly, the disclosure statement is not a warranty that the property is free from defects. It reflects certain information known to the seller and does not replace the buyer’s responsibility to investigate the property’s condition.
Buyers should continue to obtain appropriate home inspections, review public records, and investigate potential concerns before proceeding with a purchase.
The $500 Disclosure Credit Is No Longer an Option
Before March 20, 2024, New York law permitted sellers to provide a $500 credit at closing instead of delivering a completed Property Condition Disclosure Statement.
This became a common practice in many residential real estate transactions, particularly in New York City and Long Island.
However, legislation signed in September 2023 eliminated that alternative.
For covered residential transactions, sellers must now provide the required disclosure statement rather than simply offering the buyer $500 at closing.
The completed statement, bearing the signatures of both buyer and seller, must be attached to the purchase contract.
This change makes it especially important for sellers to understand their disclosure obligations before listing their property and for purchasers to review the statement carefully before signing a contract.
Flooding and Flood Insurance: Important Disclosure Requirements
One of the most significant aspects of the amended law concerns flood risk.
The disclosure statement includes questions addressing whether the property is located in a floodplain, whether flood insurance may be required, and whether the property has a history of flooding or flood-related assistance.
These issues are particularly important for buyers and sellers in coastal and low-lying communities throughout Queens, Nassau County, and Suffolk County.
For example, someone purchasing a home in Long Beach, the Rockaways, or another flood-prone community should understand that flood exposure can affect insurance expenses, financing requirements, and the long-term cost of ownership.
The disclosure statement asks about matters including:
Whether the property is located within designated FEMA flood hazard areas.
Whether federal law requires flood insurance for the property.
Whether the property has received certain federal disaster assistance for flood damage.
Whether the seller has knowledge of flooding, drainage problems, or related conditions.
Certain prior flood insurance claims and flood-related losses.
A property’s location outside a designated high-risk flood zone does not necessarily mean it is free from flooding concerns.
Buyers should independently investigate flood risks and obtain insurance information before committing to a purchase.
Does the Disclosure Law Apply to Every Property Sale?
No. New York’s Property Condition Disclosure Act does not apply to every real estate transaction.
The law generally covers sales of residential real property improved by one to four dwelling units, but certain properties and transactions are excluded or exempt.
For example, condominium units and cooperative apartments are not covered by the statutory definition of residential real property for this purpose.
Real Property Law § 463 also provides exemptions for certain transfers, including qualifying transfers by fiduciaries administering estates or trusts, transfers between certain family members, and transfers pursuant to specified court orders.
However, sellers should not assume that a transaction is exempt simply because a property is owned by a trust, LLC, or another entity.
The particular facts, ownership structure, and nature of the transfer must be reviewed.
An experienced New York real estate attorney can help determine whether the disclosure requirements apply to a particular transaction.
Can a Seller Still Sell a Property “As Is”?
Yes.
New York law expressly permits buyers and sellers to enter into agreements concerning the physical condition of a property, including agreements providing for an “as is” sale.
However, selling a property “as is” does not automatically eliminate a seller’s statutory disclosure obligations.
An “as is” provision generally addresses the condition in which the buyer agrees to accept the property. It should not be treated as permission to knowingly provide false or misleading information.
For sellers, the important distinction is between declining to make repairs and failing to comply with applicable disclosure requirements.
For buyers, an “as is” provision makes careful due diligence particularly important.
Before signing a contract, buyers should understand which inspections have been performed, whether any significant conditions have been identified, and what remedies or contingencies are available under the proposed agreement.
What Happens If a Seller Provides Incorrect Information?
New York Real Property Law § 465 addresses seller liability under the Property Condition Disclosure Act.
The statute provides for liability for actual damages resulting from a seller’s willful failure to comply with applicable requirements concerning the disclosure statement. It also preserves other existing legal remedies.
Not every inaccurate statement automatically establishes liability.
A seller’s actual knowledge, the circumstances surrounding the disclosure, and the nature of the alleged misrepresentation can be important considerations.
Sellers should therefore answer the disclosure questions carefully and truthfully, based on their actual knowledge.
The statute does not generally require sellers to conduct new investigations, obtain inspections, or search public records solely to complete the disclosure statement.
Nevertheless, sellers should avoid guessing when they do not know an answer.
A seller who subsequently learns information that makes a previously delivered disclosure statement materially inaccurate may also have an obligation to provide an updated statement before the transfer of title or the buyer’s occupancy, whichever occurs first.
Why Buyers Should Not Rely Solely on the Disclosure Statement
Although the Property Condition Disclosure Statement provides useful information, it should be viewed as one component of a broader due diligence process.
Consider a buyer purchasing a two-family home in Astoria, Queens.
The seller’s disclosure statement may identify certain known issues with the property. However, it does not necessarily establish that the property’s current configuration is legally authorized.
The buyer may still need to investigate the certificate of occupancy, building permits, open violations, zoning restrictions, and whether the property’s actual use is consistent with applicable law.
Similarly, a buyer purchasing a home in Nassau or Suffolk County may need to investigate outstanding permits, improvements made without required approvals, title restrictions, or other matters that could affect ownership or future resale.
These issues may not be fully addressed by a property condition disclosure statement.
The safest approach is to coordinate legal review, property inspections, title examination, and financing considerations before becoming contractually obligated.
Why Sellers Should Speak With an Attorney Before Signing a Contract
Selling a home involves more than agreeing on a purchase price.
A properly prepared contract should address important issues such as the down payment, closing date, financing provisions, property condition, title obligations, possession, and potential remedies if either party fails to perform.
For sellers, addressing disclosure obligations early can help reduce the risk of disputes arising after the contract is signed.
For buyers, attorney review can help identify issues that should be resolved before committing to the purchase.
This is especially important in New York, where residential real estate contracts frequently contain negotiated riders and provisions that can substantially affect the parties’ rights.
An attorney can help ensure that the contract reflects the parties’ agreement and appropriately addresses the particular property and transaction.
Buying or Selling Property in Queens, Nassau County, or Suffolk County?
Whether you are purchasing your first home, selling an investment property, or transferring ownership of a multi-family building, understanding your legal obligations before signing a contract can help protect your investment.
The Law Office of George K. Fuiaxis represents buyers and sellers in residential and commercial real estate transactions throughout Queens, Brooklyn, Manhattan, the Bronx, Staten Island, Nassau County, Suffolk County, and surrounding New York communities.
Our office assists clients with contract preparation and review, real estate due diligence, title matters, financing issues, and closing representation.
Before you sign a real estate contract, understand your rights and obligations.
Contact The Law Office of George K. Fuiaxis at 718-777-0223 to schedule a consultation regarding your New York real estate purchase or sale.
Attorney Advertisement. This article is provided for general informational purposes only and does not constitute legal advice or establish an attorney-client relationship.